Accenture to Acquire Phase One, Further Enhancing Its Salesforce Capabilities and Client Innovation in the Cloud for Federal Market

ARLINGTON, Va.--()--Accenture (NYSE:ACN) has entered into an agreement to acquire Phase One Consulting Group, Inc., a privately held Alexandria, Virginia-based company specializing in modernization and digital transformation for the federal market. Phase One is a leader in delivering high-impact Salesforce solutions that help transform government. Once the acquisition is complete, the Phase One team will join Accenture Federal Services.

“At Phase One, we embrace change and innovation, and we are excited to join forces with Accenture to help deliver the value of Software as a Service to US government agencies.”

Bolstering Accenture’s Cloud First strategy, Phase One will bring a complementary client footprint and large, highly skilled team offering Salesforce and management consulting services. Phase One currently delivers secure cloud solutions to cabinet departments and federal agencies with wide-ranging missions across national infrastructure, finance and regulatory services, human services, healthcare, and homeland security sectors.

“New cloud and Software-as-a-Service platforms are transforming both the federal technology landscape and the way agencies serve their customers and achieve their missions,” said David Moskovitz, chief executive of Accenture Federal Services. “Through investments like our acquisition of Phase One, we are expanding our capabilities, technology and skills to help lead our federal clients on their journey to be more agile, responsive and secure in a digital world.”

The acquisition of Phase One is the seventh Salesforce-related acquisition that Accenture has made since 2014; the others include Media Hive, New Energy Group, CRMWaypoint, Cloud Sherpas, tquila and ClientHouse.

“We are proud to be combining our skills and innovative approach with Accenture’s scale,” said Jerad Speigel, Phase One chief executive officer. “At Phase One, we embrace change and innovation, and we are excited to join forces with Accenture to help deliver the value of Software as a Service to US government agencies.”

Phase One is a Salesforce Platinum Consulting Partner focused exclusively on the $80 billion federal IT market. This elite status reflects its expertise in Salesforce integration and development services within some of the most complex federal client technology environments. For the federal market, Phase One has developed cloud accelerator methodologies designed to help federal clients enhance their organizational efficiency and achieve mission-specific goals.

“Salesforce’s Intelligent Customer Success Platform empowers federal agencies to transform into more modern, responsive and intelligent organizations, enabling employees to connect with citizens in entirely new and powerful ways,” said Tyler Prince, Salesforce’s executive vice-president, World Wide Alliances and Go-to-Market Innovation. “With industry solutions, thousands of skilled Salesforce consultants and rapidly expanding capabilities, Accenture is a top strategic partner that empowers our mutual customers to digitally transform their businesses and succeed.”

Accenture was one of the first global companies to establish a strategic alliance with Salesforce, and continues to grow and strengthen its position as a leading Salesforce partner. With more than 11,000 Salesforce-skilled professionals and an ongoing investment in building deep Salesforce skills and leading capabilities, Accenture is unique in the Salesforce ecosystem.

In April, Accenture was identified as the overall leader in the “as-a-Service Winners’ Circle” in the HfS Blueprint Report: Salesforce Services 2017 for its excellence in both Salesforce innovation and execution. The report named Accenture as the “clear leader in scale” with “the largest Salesforce services practice” in the Salesforce ecosystem. In May, Salesforce named Accenture Interactive the 2017 Salesforce Commerce Cloud Global Innovation Partner of the Year in recognition of its outstanding contribution toward business growth, technology innovation and joint customer success.

The transaction is subject to regulatory reviews and other customary closing conditions, and the financial details are not being disclosed.

Accenture Federal Services, a wholly owned subsidiary of Accenture LLP, is a U.S. company with offices in Arlington, Virginia. Accenture’s federal business has served every cabinet-level department and 30 of the largest federal organizations. Accenture Federal Services transforms bold ideas into breakthrough outcomes for clients at defense, intelligence, public safety, civilian and military health organizations.

Salesforce is a trademark of Salesforce.com, Inc.

About Accenture

Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 401,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

Accenture is a leader in helping organizations move to the cloud to take advantage of a new era of service delivery and flexibility, where applications, infrastructure and business processes are brought together and delivered As-a-Service. Accenture’s Cloud First agenda offers comprehensive, industry-focused cloud services including strategy, implementation, migration and managed services, and assets including the Accenture Cloud Platform that can drive broader transformational programs for clients. Accenture has worked on over 20,000 cloud computing projects for clients, including three-quarters of the Fortune Global 100, and has more than 31,000 professionals trained in cloud computing.

Forward-Looking Statements

Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: the company and Phase One Consulting, Inc. will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions; the transaction might not achieve the anticipated benefits for the company; the company’s results of operations could be adversely affected by volatile, negative or uncertain economic conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; the company’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions, including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the changing technological environment could materially affect the company’s results of operations; if the company is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; the markets in which the company competes are highly competitive, and the company might not be able to compete effectively; the company could have liability or the company’s reputation could be damaged if the company fails to protect client and/or company data from security breaches or cyberattacks; the company’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies; changes in the company’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; the company’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; the company’s business could be materially adversely affected if the company incurs legal liability; the company’s work with government clients exposes the company to additional risks inherent in the government contracting environment; the company might not be successful at identifying, acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; adverse changes to the company’s relationships with key alliance partners or in the business of its key alliance partners could adversely affect the company’s results of operations; the company’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; if the company is unable to protect its intellectual property rights from unauthorized use or infringement by third parties, its business could be adversely affected; the company’s ability to attract and retain business and employees may depend on its reputation in the marketplace; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; any changes to the estimates and assumptions that the company makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; many of the company’s contracts include payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; the company’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; the company may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.

Contacts

Accenture
Deirdre Blackwood, + 1 703-947-5798
deirdre.m.blackwood@accenture.com

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Release Summary

Accenture has entered into an agreement to acquire Phase One Consulting Group.

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